What Are Asset Allocations?

What Are Asset Allocations?

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Most people confuse asset allocation with diversification, but they are two very different things.

In this episode of YSR Shorts, Dennis O’Keefe explains how asset allocation works, where it came from, and why it is one of the most powerful tools in long-term investing. Dennis traces the concept back to Roger Gibson’s groundbreaking 1989 research, breaks down the pie chart model he uses with clients, and explains why maintaining category percentages matters more than picking individual winners.

Key takeaways:

  • The difference between diversification and asset allocation
  • How Roger Gibson’s research changed the way portfolios are built
  • Why the percentages between categories matter more than individual stock picks
  • How asset allocation removes emotional decision-making from investing
  • And more!

Connect with Dennis O’Keefe: 

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